법인세경정거부처분취소
1. The plaintiff's appeal is dismissed.
2. The costs of appeal shall be borne by the Plaintiff.
Purport of claim and appeal
The first instance court.
1. The reasoning of the judgment of the court of first instance is the same as that of the judgment of the court of first instance, except for adding the following judgments pursuant to Article 8(2) of the Administrative Litigation Act and the main sentence of Article 420 of the Civil Procedure Act.
2. Additional determination
A. According to Articles 10 (Distribution of Dividends) and 23 (Method of Evasion of Heavy Taxation)(1) and (2) of the Korea-China Tax Treaty or Article 4 of the Protocol on Distribution of Dividend Income under the Korea-China Tax Treaty, China may impose on dividends paid by a company that is a resident of China to residents in Korea, but with respect to such dividends, China may also impose on such dividends in accordance with the Chinese law. Specifically, in cases where a beneficiary who is a resident of Korea owns not less than 25% of the Chinese company's capital as a beneficial owner, it shall be imposed in China within the limit of 5% of the total amount of dividends, and in all other cases within the limit of 10% of the total amount of dividends, it shall be imposed in China within the limit of 95% or 90%.
The purpose of these regulations is to adjust and distribute the taxation authority between the two countries to the extent that the dividend income of non-residents in the source countries can be imposed in the source countries as well as in the source countries. However, the limit of the taxation authority in China is differentiated to 5% or 10% of the dividend amount in accordance with the ratio of capital ownership to the Chinese source companies in the source countries, which are non-residents. When paying dividends to the parent company which directly controls the shares of the subsidiary in a certain ratio, the taxation authority in the source countries is limited to the lower rate, thereby preventing double taxation arising from the dividends among the corporations.
B. The first text and the second text of the instant provision concerning deemed foreign tax credit, and under the first text of the instant provision, Korean companies are paid in China as beneficial owners.